Tourist bookings gone, cancellations on
Sri Lanka’s travel industry is managing with new bookings amidst cancellations since the UK and other countries imposed essential only advice to travellers. This and the withholding of the extension on moratoriums have clearly adversely impacted SMEs that comprise at least 80 per cent of the industry.
Last month Santani had about 10 per cent occupancy and today about 2-3 rooms get booked daily, the hotel’s owner Vickum Nawagamuwage told the Business Times adding that in May they had reached 30 per cent occupancy and from January to March they were running at 75 per cent occupancy. “But if we are to pay loans, fuel and salaries then we can’t survive,” he said.
With the moratoriums not extended the companies in the leisure sector have to pay back their loans. Under the circumstances they will be compelled to either go for a default or layoff, Mr. Nawagamuwage said.
But considering the crisis in the economy, he noted they will have to take care of the people.
Obtaining a loan involves a risk but passing it all off on the industry is not fair, he noted adding that Sri Lanka’s tourism industry borrowings comprise only 8 per cent of all loans. So it is not correct to state that banks will collapse if this is not paid up, he said.
The industry has requested for a meeting with the Bank’s Association next week but nothing is scheduled yet, Hotels Association President M. Shanthikumar said.
He pointed out that it is imperative that they retain their staff else they will face a problem once the industry gets back on their feet. “Almost everyday people are leaving for overseas jobs.”
And due to the latest travel advisory, cancellations have started again, he said adding that they are on the verge of collapse as even the locals are not patronising their hotels due to the lack of fuel.
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